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Profitability of Pharmaceutical Companies in the Visegrád Countries

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  • Veronika Fenyves
  • Balazs Nyul
  • Krisztina Dajnoki
  • Zoltan Bacs
  • Gergo Tomori

Abstract

The pharmaceutical sector is one of the most profitable industries in the world, despite the very high proportion of the required research and development costs that determine the activity itself and the high risks involved in investing in them. In addition to a number of industry-specific characteristics, the innovation policies of each country might also have a significant impact on the efficiency of pharmaceutical companies. The primary aim of the research was to demonstrate this effect in the case of the Visegrád countries. The ROE seemed to best reflect the ownership interests and the combined effect of other profitability ratios and it was confirmed by analysis of variance. The analysis was based on the EMIS corporate database; multivariate statistical methods were applied to demonstrate the reaching of indicator trends, and from among those methods regression analysis was applied in particular. Based on the findings, it was concluded that primarily the more profitable pharmaceutical companies were able to utilize their assets more efficiently, while manufacturers in the latter category financed their operations with external capital to a lower extent

Suggested Citation

  • Veronika Fenyves & Balazs Nyul & Krisztina Dajnoki & Zoltan Bacs & Gergo Tomori, 2019. "Profitability of Pharmaceutical Companies in the Visegrád Countries," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(4), pages 99-111.
    • Handle: RePEc:mje:mjejnl:v:15:y:2019:i:4:99-111
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    2. LAKATOS Vilmos & JÓZSA Priscilla & RÓZSA Attila, 2020. "Comparison Of The Leading Vehicle Manufacturers In Hungary And Romania Based On Their Financial Position Situation," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 274-283, July.
    3. Gabriella KOSZORÚS & Tibor TARNÓCZI, 2020. "Performance Factors Of The Listed Companies In The Visegrad Countries And Romania," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 15, pages 17-25, June.
    4. Mª Ángeles Alcaide & Elena de la Poza & Mª Natividad Guadalajara, 2021. "Predicting the Reputation of Pharmaceutical Firms with Financing and Geographical Location Data," Mathematics, MDPI, vol. 9(16), pages 1-17, August.
    5. LAKATOS Vilmos & TAKÁCS Viktor László & BÉRESNÉ MÁRTHA Bernadett, 2020. "Supporting Corporate Decision-Making With The Tableau Program," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 304-314, December.

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